When should your business register for VAT?

No matter what industry you operate your business in, by law, you must register for VAT if your VAT taxable turnover goes over £85,000, or that you know that you will go over the tax threshold by the end of the year.

And, when it comes to working out your VAT taxable turnover, you must take into account everything that is sold that is not VAT exempt.

If you’re struggling to understand the VAT registration process, you have certainly landed in the right place. We have created a helpful guide outlining everything that you need to know when it comes to registering for VAT.


So, first and foremost, when must you register for VAT? According to Gov.uk, you must register for VAT in the following instances….


  • You expect your VAT taxable turnover to be more than £85,000 in the next 30-day period
  • Your business had a VAT taxable turnover of more than £85,000 over the last 12 months
  • You might also need to register in some other cases, depending on the kinds of goods or services you sell and where you sell them.
  • If you’ll exceed the VAT threshold in the next 30-day period
  • You must register if you realise that your total VAT taxable turnover is going to be more than £85,000 in the next 30-day period.
  • You have to register by the end of that 30-day period. Your effective date of registration is the date you realised, not the date your turnover went over the threshold.


If you exceeded the VAT threshold in the past 12 months, it is important that you take the necessary steps to complete the VAT registration process as soon as possible. You have 30 days that you have went over the threshold to register and it’s important you do this without delay.


Conducting Businesses outside the UK – what’s the rules?

If you are selling products or services outside of the UK, there’s no threshold however, if you are supplying any goods and services to the UK, the rules apply.


Can you get an exception?

Yes, you can apply for a registration ‘exception’ if your taxable turnover goes over the threshold but you can only do this on a temporary basis and you must write directly to

HMRC showing evidence why you believe your VAT taxable turnover should be exempt.


Why choose React Accountancy?

Here at React Accountancy, we provide trusted accountancy services to start-up, established and multi-national businesses across a diverse range of industries.

From the moment you get in touch, our approachable, friendly and professional team will go above and beyond to ensure that you receive the right advice, support and accountancy solutions for your business.

All of our team has years of experience in providing accountancy services that support your business including complex financial issues.

Get in touch today for further information about any of our services. You can reach us on 01914324110 or contact us via email using info@reactaccountancy.co.uk



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